ARGENTINA: Black Market Peso Rallies to Strongest in Two Months---------------------------------------------------------------Charlie Devereux at Bloomberg News reports that Argentina's pesorose to a two-month high in black-market trading after thegovernment began a crack down on illegal street transactions incentral Buenos Aires.

The peso strengthened 2.4 percent to 13.59 per dollar at 2:43 p.m.on Nov. 5 in Buenos Aires, its strongest level since Aug. 22, saysthe report. The gap with the official exchange rate of ARS8.5077per dollar, which Argentines need government permission to access,has narrowed to 59 percent from 89 percent on Sept. 24, BloombergNews relates.

The report discloses that the black market peso has strengthened15 percent since the appointment of central bank PresidentAlejandro Vanoli on Oct. 1, who took office vowing to strictlyenforce foreign exchange rules.

Argentines turn to the black market to buy dollars to evade limitsin the official market and avoid registering their purchases withtax authorities, Bloomberg News relays.

Argentines also are buying fewer dollars as high inflation andlackluster growth crimps cash available for saving, Mr. Quintanasaid, Bloomberg News relays. Some Argentines who can buy dollarsat the official rate are then turning around and selling thecurrency on the black market for a quick profit, according to Mr.Quintana added, notes the report.

"You can buy on the official market at the beginning of the monthand when you need cash sell on the parallel market," BloombergNews quoted Mr. Quintana as saying. "It takes away demand fromthe black market and at the same time creates a greater supply ofdollars."

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TCRLA on Aug. 1, 2014, reported that Argentina defaulted on someof its debt late July 30 after expiration of a 30-day grace periodon a US$539 million interest payment. Earlier that day, talkswith a court-appointed mediator ended without resolving a standoffbetween the country and a group of hedge funds seeking fullpayment on bonds that the country had defaulted on in 2001. AU.S. judge had ruled that the interest payment couldn't be madeunless the hedge funds led by Elliott Management Corp., got theUS$1.5 billion they claimed. The country hasn't been able toaccess international credit markets since its US$95 billiondefault 13 years ago.

The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratingsdowngraded Argentina's Foreign Currency Issuer Default Rating(IDR) to 'RD' from 'CC', and its Short-Term Foreign CurrencyIssuer Default Rating to 'RD' from 'C'.

Meanwhile, Moody's Investors Service affirmed Argentina's Caa1issuer rating, which also applies to domestic law bonds, confirmedthe (P)Caa2 rating for its foreign law bonds, and affirmed the Carating on the original defaulted bonds. The long-term issuerrating was placed on negative outlook, reported the TCR-LA on Aug.5, 2014.

On Aug. 8, 2014, the TCR-LA reported that Moody's Latin AmericaAgente de Calificacion de Riesgo affirmed the deposit, debt,issuer and corporate family ratings on Argentina's banks andfinancial institutions, both on the global and national scales.The outlook on these ratings has been changed to negative fromstable. At the same time, the rating agency has affirmed thebanks' Caa2 foreign-currency deposit ratings and Not-Prime short-term ratings. The banks' standalone E financialstrength ratings corresponding to caa1 baseline credit assessments(BCA) have also been affirmed.

The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. hasdowngraded Argentina's long-term foreign currency issuer ratingfrom CC to Selective Default (SD). The short-term foreigncurrency rating has been downgraded to Default (D), from R-5. Thelong-term and short-term local currency issuer ratings have beenconfirmed at B (low) and R-5, respectively. The trend on thelong-term local currency rating is Negative, and the trend on theshort-term local currency rating is Stable.

On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgradedArgentina's rating on Par Bonds issued under Foreign Law to 'D'from 'C' as Argentina has not been able to cure the missed couponpayments on its par bonds issued under foreign law after theexpiration of the 30-day grace period on Oct. 30. According toFitch's criteria, this constitutes an event of default and Fitchhas downgraded the affected securities to 'D'. In addition, Fitchhas affirmed:

TELECOM ARGENTINA: Posts ARS2,684M Net Income for 9-Month Period----------------------------------------------------------------Telecom Argentina SA disclosed a net income of ARS2,684 millionfor the nine-month period ended September 30, 2014, or +13.7% whencompared to the same period last year. Net income attributable toTelecom Argentina amounted to ARS2,644 million (+13.8% vs. 9M13).

A full text copy of the company's financial results is availablefree at:

As reported by the Troubled Company Reporter-Latin America onMay 16, 2014, Moody's Latin America Calificadora de Riesgo hasassigned a first time Corporate Family Rating of Caa1 on itsGlobal Scale and Ba1.ar on its Argentina National Scale to TelecomArgentina S.A. (Telecom). The outlook is stable.

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BANCO GMAC: Moody's Upgrades Deposit Ratings to Ba2---------------------------------------------------Moody's Investors Service has affirmed the standalone bankfinancial strength ratings (BFSR) of Banco GMAC S.A. and BancoFord S.A., and maintained their respective baseline creditassessments (BCA) at ba3. At the same time, Moody's affirmed theissuer and corporate family ratings of Companhia de Credito,Financiamento e Investimento RCI Brasil (RCI Brasil), andmaintained its BCA at ba3. Moody's also upgraded the long-termglobal local currency and foreign currency deposit ratings ofBanco GMAC to Ba2, from Ba3, and the long-term global localcurrency and foreign currency deposit ratings of Banco Ford toBa1, from Ba2. The short-term global local currency and foreigncurrency deposit ratings of both banks remained at Not Prime. Inaddition, Moody's upgraded Banco GMAC's Brazilian national scaledeposit ratings to A1.br and BR-1, from A3.br and BR-2, long- andshort-term, respectively, and Banco Ford's long-term Braziliannational scale deposit rating to Aa1.br, from Aa2.br. Banco Ford'sshort-term Brazilian national scale deposit rating remained at BR-1. Moody's also affirmed RCI Brasil's long-term Brazilian nationalscale issuer rating at Aa1.br. The outlook on all ratings remainsstable.

In affirming the standalone ratings of Banco GMAC and Banco Fordat D-/ba3 and maintaining the baseline credit assessment of RCIBrasil at ba3, Moody's acknowledges these lenders' ability tomaintain loan origination and adequate financial metrics despitethe decline in car production and sales during the first half of2014. By virtue of their role as captive car lenders, Banco GMACand RCI Brasil have benefited from car sales campaigns by therespective manufacturers, which resulted in a boost to loanorigination. In the 12 months to June 2014, Banco GMAC grew loansby 41.5%, while Banco Ford and RCI Brasil increased lending by21.5% and 16%, respectively, a contrast to the 9.1% reduction incar sales overall.

Moody's also notes that loan delinquencies reported by Banco GMAC,Banco Ford and RCI Brasil remain comfortably below the average forthe banking system's vehicle financing portfolios. Thisperformance reflects the conservative loan underwriting standardsof the specialized vehicle lenders, the high quality of theirtargeted borrowers, and the stronger credit profile of their loanbooks, which are mainly composed of lower-risk new car financings.Their close relationship with authorized dealers and the recenttightening of their credit underwriting requirements also helpmaintain their asset quality. Other important risk mitigantsinclude the lenders' solid capital and reserve buffers that areavailable to absorb potentially higher losses.

Moody's said that the affirmation of Banco GMAC's D- standalonerating incorporates its strong market positioning as the lead loanoriginator of General Motors' financed sales in Brazil and as thelargest operation among Moody's rated Brazilian vehicle lenders.The affirmation also reflects the bank's diverse fundingstructure, which includes a high proportion of loan salesagreements with other financial institutions and receivables funds(FIDCs), because of the low risk and good quality of the loanbook. While higher loan sales to other financial institutions inthe first half of 2014 led the bank's profits down in the period,this effect was balanced by its consistent and robust loanorigination.

Banco Ford is engaged in financing the acquisition of new cars andtrucks by Ford's authorized dealers, and is focused solely on thewholesale segment. Because of its narrow product base, the bankhas a less diversified revenue structure than other vehiclelenders. However, its lean operations have benefited itsprofitability, particularly when compared with peers'. Its closerelation with authorized Ford dealers has supported its lowdelinquency levels, and together with its above averagecapitalization, also support the affirmation of its D- standalonerating.

RCI Brasil's good capitalization and good asset quality supportthe maintenance of the company's ba3 standalone BCA. The captivefinance operation of automakers Renault and Nissan has improvedits funding diversification by tapping into the domestic debtmarket through issuance of letras financeiras, instruments withlonger tenors than time deposits. While the larger volume of debtissued in the first half of the year reduced the company'sprofitability, it remained adequate because of strong loangeneration.

Moody's said it does not expect changes in the business modelemployed by vehicle lenders despite present contraction of carproduction. They will continue to be specialized, mono-productlenders, with close ties to automakers. Their standalone ratingscontinue to be constrained by limited revenue diversification, dueto their narrow product mix, comprised either of auto loans toindividuals or floor-plan financing to car dealers, or both. Theirwholesale funding structures with high participation of interbankand/or time deposits, which pressures funding costs upwards, arealso a key constraint to the standalone ratings.

Upgrade Of Banco GMAC's And Banco Ford's Supported Ratings

In upgrading Banco GMAC's deposit ratings to Ba2, from Ba3,Moody's acknowledges that resources made available by theautomaker General Motors Company (Ba1/STA) to the bank's parentGeneral Motors Financial Company, Inc (ba3, Ba1/STA) could beextended to the Brazilian subsidiary. As such, the additionalnotch applied to Banco GMAC's deposit ratings reflect the supportcapacity of the automaker transmitted through the bank's parent.

The upgrade of Banco Ford's deposit ratings to Ba1, from Ba2, alsoreflects the strong relation between its US-based parent FordMotor Credit Company LLC (ba2, Baa3/STA) and the automaker FordMotor Company (Baa3/STA). This support is backed by a keep-wellagreement established between the two parties. Similar to BancoGMAC's ratings, the deposit ratings of Banco Ford benefit from anuplift of one notch that reflects the additional capacity ofsupport made available to the bank.

Methodology Used & Last Rating Actions

The last rating action on Banco Ford was on 26 June 2014, whenMoody's assigned a BFSR of D-, equivalent to a ba3 BCA, to BancoFord. At the same time, Moody's assigned long- and short-termglobal local- and foreign-currency deposit ratings of Ba2 and Not-Prime, respectively, as well as long- and short-term nationalscale ratings of Aa2.br and BR-1, respectively, to Banco Ford. Theoutlook on all ratings was stable.

The last rating action on Banco GMAC was on 10 October 2013, whenMoody's affirmed Banco GMAC's BFSR at D-, equivalent to a ba3 BCA.Moody's also affirmed the local and foreign currency depositratings at Ba3 and Not Prime, long- and short-term, respectively,and the national scale deposit ratings at A3.br and BR-2, long-and short-term, respectively. The outlook on all ratings wasstable.

The last rating action on RCI Brasil occurred on 26 October 2012,when Moody's affirmed RCI Brasil's long-term global local currencyissuer rating at Ba1 and the local currency issuer rating on theBrazilian national scale at Aa1.br. Moody's assigned a long-termlocal currency corporate family rating (CFR) of Ba1 to RCI Brasiland also maintained the company's BCA at ba3. All ratings had astable Outlook.

The principal methodology used in rating Banco GMAC and Banco Fordwas Global Banks published in July 2014.

The principal methodology used in rating RCI Brasil was theFinance Company Global Rating Methodology published in March 2012.

Moody's National Scale Ratings (NSRs) are intended as relativemeasures of creditworthiness among debt issues and issuers withina country, enabling market participants to better differentiaterelative risks. NSRs differ from Moody's global scale ratings inthat they are not globally comparable with the full universe ofMoody's rated entities, but only with NSRs for other rated debtissues and issuers within the same country. NSRs are designated bya ".nn" country modifier signifying the relevant country, as in".za" for South Africa. For further information on Moody'sapproach to national scale credit ratings, please refer to Moody'sCredit rating Methodology published in June 2014 entitled "MappingMoody's National Scale Ratings to Global Scale Ratings".

Banco Ford S.A. is headquartered in Sao Bernardo do Campo, Brazil.As of 30 June 2014, Banco Ford had total assets of BRL1.46 billion($661 million) and shareholders' equity of BRL292 million ($132million).

Banco GMAC is headquartered in Sao Paulo, Brazil. As of 30 June2014, Banco GMAC had total assets of BRL13.7 billion ($6.2billion) and shareholders' equity of BRL1.4 billion ($657million).

RCI Brasil is headquartered in Curitiba, Brazil. As of 30 June2014, the finance company had total assets of approximately BRL8.8billion ($4.0 billion) and equity of BRL1.2 billion ($534million).

MARFRIG GLOBAL: Fitch Raises IDR to 'B+'; Outlook Stable--------------------------------------------------------Fitch Ratings has upgraded Marfrig Global Food S.A.'s (Marfrig)Issuer Default Rating (IDR) and Senior Unsecured Notes to 'B+'from 'B'. Fitch has also upgraded the foreign currency (FC) IDRof Marfrig Overseas Ltd. This IDR has subsequently been withdrawnby Fitch because Marfrig Overseas is a special purpose company andthe ratings of this entity are no longer considered by Fitch to berelevant to the agency's coverage. In addition to these ratingactions, Fitch has upgraded Marfrig's National Scale rating to'BBB+(bra)' from 'BBB(bra)'.

The corporate Rating Outlook is Stable.

The upgrade reflects Marfrig's lower leverage and adequateliquidity position. The upgrade incorporates Fitch's expectationthat the company will generate positive free cash flow (FCF) inthe next two years thanks to increased EBITDA, lower interestexpenses and better working capital management. Fitch expectsMarfrig to report strong performance in 2014 thanks to positivefundamental of the beef industry, robust international demand, andlower grain costs.

KEY RATING DRIVERS:

Improving Credit Metrics:

Fitch expects Marfrig Global Foods S.A.'s (Marfrig) netdebt/EBITDA ratio to fall toward 4x by 2015 from 5.2x at year-end2013. The improved metrics are partially related to thedivestment of the Seara Brasil and Zenda leather businesses to JBSS.A. for BRL5.8 billion in 2013. Future debt reduction should beachieved by better asset and logistics management, a reduction incapex, lower working capital requirements and decreased interestexpense.

Simplified Business Profile:

Positive industry fundamentals, which include relatively low grainprices, and a focus on operational improvements should spurorganic cash flow growth. Marfrig is implementing a strategycalled 'Focus to Win,' which aims to improve profitability andrevenues with the focus of its commercial strategy on the rapiddevelopment of the food service and retail channels. Marfrig hassimplified its organizational structure and decreased executionrisk with the divestment of Seara Brazil.

No Major Acquisitions Anticipated:

Fitch does not foresee any major acquisitions for Marfrig in thenext 18 months, as the company's management is focused ondeleveraging its balance sheet, improving cash flow generation andreducing interest expenses through liabilities management. Keyinitiatives will be the optimization of plants and distribution byMarfrig Beef, the geographic expansion of Keystone and the growthof Moy Park through multiprotein retail sales in markets acrossthe U.K. and continental Europe.

Strong Diversification:

Marfrig's ratings incorporate its broad product and geographicdiversification which helps to reduce risks related to disease,trade restrictions and currency fluctuation. The company isstructured into three business units: Marfrig Beef (46% ofrevenues), the world's third largest beef producer; Moy Park(26%), one of the largest poultry-based processed productsuppliers in the UK; and Keystone Foods (28%), which processesfood for major restaurant chains (notably McDonald's).

RATING SENSITIVITIES

A negative rating action could be precipitated by Marfrig'sinability to generate positive FCF over the next 24 months and tomaintain net leverage above 4.5x on a sustainable basis.

An upgrade could result from the company building a track recordof generating positive FCF, demonstrating the resilience of itsgroup's operating margin as a result of its businessdiversification, while a consistent net leverage ratio near orbelow 3.5x also would be viewed positively.

OI SA: Apax Said to Prepare US$8.8BB Bid for Oi Portugal Assets---------------------------------------------------------------Cristiane Lucchesi and Christiana Sciaudone at Bloomberg Newsreport that Apax Partners LLP is planning to offer about EUR7billion (US$8.8 billion) for Oi SA's assets in Portugal inpartnership with CVC Capital Partners Ltd. and Bain CapitalPartners LLC, according to a person with direct knowledge of thematter.

The private-equity fund is looking at the company's numbers indetail with the aim to match a proposal made by billionairePatrick Drahi on Nov. 2, the person said, asking not to beidentified because the discussions are private, according toBloomberg News. The funds are betting the Portuguese governmentwould be in favor of them, the person said, Bloomberg Newsrelates. The firms are considering raising debt to help financethe transaction, the person added.

Bloomberg News notes that Oi SA will wait to get more offers forits Portuguese assets before deciding what to do, another threepeople said.

According to the report, Altice SA (ATC), Drahi's Luxembourg-basedcable holding company, would finance the EUR7 billion bid withcash and debt, it said on Nov. 2. The price includes two sets ofEUR400 million-euro payments that will depend on future revenueand cash flow, Bloomberg News says.

In a filing, says Bloomberg News, Oi SA said it has sent Altice'sproposal to its board for analysis. The company aims to completea transaction by the end of this year, people familiar with thematter said.

Proceeds from the sale would help Oi SA pare its US$19 billiondebt and take part in consolidating Latin America's biggesttelecommunications market, notes Bloomberg News. A successful bidby Altice or Apax would also unwind Portugal Telecom SGPS SA andOi SA's yearlong merger that was marred by defaulted debt at aunit of Grupo Espirito Santo and a CEO change, Bloomberg Newsrelays.

Portugal Telecom SGPS has veto rights over a sale of thePortuguese assets, according to two people familiar with thematter, Bloomberg News relates.

Oi SA and Portugal Telecom agreed a year ago on the combination tocreate a carrier with 100 million customers to compete againstTelefonica SA (TEF) and Carlos Slim's America Movil SAB, BloombergNews notes. In July, the companies renegotiated the transactionto give Portugal Telecom a smaller stake in the combined entityafter it emerged that the Lisbon-based partner was holding debtdefaulted by Rioforte Investments.

About Oi S.A.

Oi S.A., through its subsidiaries, provides integratedtelecommunication services for residential customers, companies,and governmental agencies in Brazil. The company was formerlyknown as Brasil Telecom S.A. and changed its name to Oi S.A. inFebruary 2012. Oi S.A. was founded in 1963 and is headquartered inRio de Janeiro, Brazil.

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As reported in the Troubled Company Reporter-Latin America onSept. 1, 2014, Moody's America Latina has assigned a Ba1/Aa2.brcorporate family rating to Oi SA based on the company's reducedfinancial flexibility and weak credit metrics, which Moody'sbelieves will result in a weakening of Oi's competitive position.Oi has articulated plans to reduce capital spending and may notfully participate in the upcoming 4G spectrum auction in Brazil.In addition, Oi could face operational, competitive or financialchallenges related to the quickly evolving competitiveenvironment, which includes an opportunity for consolidationthrough M&A.

PETROLEO BRASILEIRO: Said to Win Support to Raise Gasoline Prices-----------------------------------------------------------------Sabrina Valle at Bloomberg News reports that Petroleo BrasileiroSA (Petrobras), the world's most indebted publicly traded crudeproducer, received support from Brazil's Finance Minister GuidoMantega to raise gasoline prices, said a person familiar with thematter.

Petrobras didn't set a date or an amount for the increase at aboard meeting in Brasilia, said the person, who asked not to benamed because the information isn't public, according to BloombergNews. While the company presented charts during the meeting basedon an eight percent increase, details of the measure probablywon't be announced, the person said, the report relates. MinisterMantega is also Petrobras's chairman.

Petrobras, which booked US$44 billion in operating losses fromselling fuel at below-market prices during President DilmaRousseff's first term, is set to raise fuel prices even as crude's25 percent plunge this year has brought international benchmarksmore into line with its subsidized refinery gate prices, BloombergNews relays. The decision comes after Preident Rousseff won re-election by the narrowest margin in Brazil's history and thecentral bank raised interest rates sooner than expected.

"It could be read as a sign of more market-friendly behavior,"Pedro Galdi, head strategist at brokerage SLW Corretora, toldBloomberg News in a telephone interview.

Fuel-price increases "are not announced, they are carried out,"Chief Executive Officer Maria das Gracas Foster said when askedabout the adjustment after the board meeting, Bloomberg Newsdiscloses. In a regulatory filing, the company said that, whilegasoline and diesel price adjustments are often discussed bymanagement and board, there is no decision to report, BloombergNews relays.

Meeting Reconvened

At the previous month's board meeting, Ms. Foster said the companyneeds at least a 10 percent increase in fuel prices, a person withknowledge of the matter said at the time, Bloomberg News relays.

The board reconvened Nov. 4 after suspending an Oct. 31 meeting inwhich it failed to reach a decision on a proposal to dismiss anexecutive cited in a money-laundering and bribery investigationthat has put President Rousseff, who was Petrobras chairwoman from2003 to 2010, on the defensive, Bloomberg News notes.

Sergio Machado, head of the producer's transport unit Transpetro,said on Nov. 3 he will take 31 days unpaid leave, Bloomberg Newsdiscloses. That followed a refusal by auditorPricewaterhouseCoopers to sign off on the company's quarterlyresults bearing his signature, said two people with knowledge ofthe issue, Bloomberg News notes. Mr. Machado said he's donenothing wrong and called the allegations absurd.

Price Parity

Petrobras shares lost 0.2 percent to BRL14.82 on Nov. 4 in SaoPaulo as West Texas Intermediate crude fell to a three-year low.

"We have parity, so it's not like there's urgency here," EricConrads, a money manager at ING Groep NV in New York who helpsoversee about US$500 million of Latin American stocks, toldBloomberg News by telephone, referring to the gap between importedfuel and local price caps in Brazil. "It's another positivesignal," Mr. Conrads added.

About Petroleo Brasileiro

Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. --Petrobras (Brazilian Petroleum Corporation) -- explores for oiland gas and produces, refines, purchases, and transports oiland gas products. The Company has proved reserves of about 14.1billion barrels of oil equivalent and operates 16 refineries, anextensive pipeline network, and more than 8,000 gas stations.

SIFCO SA: Noteholders Fail to Stymie Ch. 15 Recognition-------------------------------------------------------Law360 reported that U.S. Bankruptcy Judge Robert Gerber in NewYork granted Brazilian auto parts manufacturer Sifco SA's petitionfor recognition of its foreign bankruptcy proceeding as a "foreignmain proceeding" under Chapter 15 of the U.S. Bankruptcy Code,over the objection of a group of noteholders that contended Sifcocouldn't be trusted to treat them fairly.

According to the report, the noteholder group holding about $23.7million of the principal amount of the senior secured notes raisedquestions about whether Sifco or its foreign representative,Rubens Leite, can provide sufficient protection to noteholders.Judge Gerber allowed Leite to serve as foreign representative,ordered that the collateral account be left in its current state,and didn't condition recognition on the appointment of anexaminer.

About SIFCO SA

Brazilian company SIFCO SA began its operations in 1958, and todayit believes that it is the sole producer and supplier of frontaxles and I-beams for trucks and buses in South America. SIFCO'smanagement and engineers are located outside Sao Paulo, Brazil inthe City of Jundiai, Brazil, where it also maintains manufacturingand foundry facilities.

In the 1960s, SIFCO was dedicated to supplying the then-recentlycreated domestic Brazilian automotive industry. Eventually, SIFCObegan producing high technology forging components in compliancewith the most comprehensive requirements of several automotiveindustry segments, such as tractors and agricultural machines,among others.

SIFCO commenced a bankruptcy restructuring in Brazil on April 22,2014. A day later, on April 23, it filed a Chapter 15 petition inU.S. Bankruptcy Court (Bankr. S.D.N.Y. Case No. 14-bk-11179) inManhattan, New York.

SIFCO distributes products in the U.S. through Westport AxleCorp., which was a subsidiary until it was sold in late 2013. Thepetition shows assets of less than $500 million and debt exceeding$500 million. SIFCO has $75 million outstanding on senior securednotes with Bank of New York Mellon Corp. as agent.

SIFCO is owned by Sifco Metals Participacoes S.A. which is aprivately owned company.

SIFCO is represented in the U.S. proceedings by Duane Morris LLP,in New York.

==========================C A Y M A N I S L A N D S==========================

RJR News reports that credit provider, Access Financial Services,has felt some of the effects of the delayed payment of publicsector salary deductions.

The company, in its recently released third quarter results,states that delays in the remittance of employee contributions,particularly those in the public sector, continue to negativelyaffect its allowances for credit losses, according to RJR News.

The report notes that there was an improvement, however, duringthe three months, due to a J$20 million reduction when compared tothe previous three months.

The government has in recent months been struggling to payhundreds of millions of dollars in outstanding salary deductions,the report relates.

Mexico's largest construction company surged 4.6 percent in thepast two sessions, the biggest back-to-back increase in more thanfive months, after announcing a US$264 million contract withpartner Fluor Corp. to build well pads for heavy-oil extraction atShell's Carmon Creek project in Alberta, according to BloombergNews. The worst performer among Mexico's industrial andconstruction stocks this year, ICA has tumbled about 10 percent,while global peers gained about 19 percent, Bloomberg News notes.

The contract with Shell, Europe's biggest oil company, will boostICA's net income and open the door for increased participation incrude projects domestically and abroad through the joint venturewith Fluor, Monex Casa de Bolsa analyst Roberto Solano said,Bloomberg News says.

"This type of contract is like a key that can open opportunitiesto similar projects in the future," Mr. Solano told Bloomberg Newsin an interview from Mexico City. "Participating in this projectgenerates a favorable scenario for the company when consideringnew projects in Mexico as the energy sector opens," Mr. Solanoadded.

Mexico's landmark 2013 energy law opens the country's energyindustry to private competition for the first time since 1938 tohelp stem declining crude production, Bloomberg News relays.

Bitumen Output

The 13 well pads for Shell will be ready in December 2017, MexicoCity-based ICA said in an Oct. 30 statement obtained by BloombergNews. Shell expects Carmon Creek to produce about 80,000 barrelsof bitumen a day, according to its website.

The modules for the well pads will be built in Mexico and shippedto Canada, Eric Krantz, a spokesman for ICA-Fluor (FLR), toldBloomberg News in a telephone interview from Houston. The ventureexpects to continue to provide services to international oilproducers, ICA Chief Executive Officer Alonso Quintana said in ane-mailed response to questions from Bloomberg News.

Income from the Shell project could boost ICA's net income,according to Mr. Solano, Bloomberg News relays. The company's netdebt ratio fell to 6.7 times earnings before interest, taxes,depreciation and amortization at the end of last quarter, from 7times Ebitda at the end of last year, Chief Financial OfficerVictor Bravo said Oct. 27, Bloomberg News notes.

Bloomberg News discloses that Mr. Bravo said in August that thecompany is considering selling water and highway projects to lowernet debt. The proceeds will be used to pay debt and fundinvestments, Bravo said Oct. 27 on a quarterly earnings call,Bloomberg News relays.

The contract with The Hague-based Shell strengthens ICA's abilityto compete for international energy projects, according to MexicoCity-based Intercam Casa de Bolsa analyst Sofia Robles, BloombergNews notes.

Asset Sales

"We consider this to be excellent news for ICA at the net incomelevel," Mr. Robles said in an Oct. 31 research note to clients,Bloomberg News relays. The contract "is being added to aportfolio of projects that will generate resources quickly tostrengthen liquidity," Mr. Robles added.

ICA is recovering after a housing-market collapse and delays inpublic spending led sales to plunge, Bloomberg News notes. Lastyear ICA raised more than US$600 million in asset sales aftercredit rating cuts by Moody's Investors Service and Standard &Poor's. In May, ICA sold US$700 million of bonds due in 2024.

Moody's rates the company B2, five steps below investment grade,S&P ranks it B+, four steps lower than investment quality. Thecompany reported on Oct. 24 a third-quarter net loss of 769million pesos (US$56.9 million), compared with a profit of 241million pesos a year earlier.

Pipeline Connections

Though ICA's contract with Shell signals the company has theability to form relationships with the oil industry's biggestplayers, the payout won't contribute much to reduce high debtlevels, according to Javier Gayol, Mexico City-based analyst atCorporativo GBM SAB.

"There is a lot of leverage that could limit the company frominvesting in new infrastructure and energy projects," Mr. Gayoltold Bloomberg News in a phone interview. "The company continuesto need to sell assets to return its capital to a balanced level,"Mr. Gayol added.

Nine analysts have buy recommendations on the stock, while threesay hold and four sell, according to data compiled by Bloomberg.

ICA could bolster its natural-gas pipeline business as Mexico'sgovernment expects US$50 billion in private-sector energyinvestments, Mr. Bravo said in August, Bloomberg News notes.Mexico's state-run utility, known as CFE, said in August it willauction US$4.9 billion in pipeline and electricity projects bynext year, Bloomberg News adds.

Pipeline Proposals

ICA has received proposals from companies that seek localassociates to construct pipelines in Mexico, and could decide tojointly operate those pipelines if the companies ask them to doso, Mr. Bravo said, Bloomberg News discloses. While the companyhas never distributed gas before, it signed a contract with TAGPipelines in April to build the US$743 million Ramones II Sur GasPipeline in a joint venture with Irving, Texas-based Fluor,Bloomberg News says.

ICA has worked previously with Shell, Marathon Oil Corp (MRO),Chevron Corp. (CVX) and Valero Energy Corp (VLO) on projects,Chief Executive Officer Quintana said, Bloomberg News relays. ICAis working with Petroleos Mexicanos to develop the onshore fieldof Chicontepec as well as several drilling and productionplatforms for the state-owned operator, Mr. Quintana said,Bloomberg News notes.

"ICA has already been active the last two years incorporatingenergy projects," Bloomberg News quoted Mr. Solano as saying."The company is well positioned to participate in future projectsas Mexico's energy reforms are implemented," Mr. Solano added.

About Empresas ICA

Empresas ICA, S.A.B. de C.V. is an infrastructure company inMexico. ICA carries out large-scale civil and industrialconstruction projects and operates a portfolio of long-termassets, including airports, toll roads, water systems, and realestate. Founded in 1947, ICA is listed on the Mexican and NewYork Stock exchanges.

* * *

As reported in the Troubled Company Reporter-Latin America on Oct.24, 2014, Standard & Poor's Ratings Services lowered its Mexicannational scale rating on Empresas ICA, S.A.B de C.V. (ICA) to'mxBBB-' from 'mxBBB' following the revised national scalecriteria and mapping guidelines. The outlook remains negative.

The rating action reflects missed interest and principal paymentsof approximately US$3.6 million and US$1.6 million, respectively,that were due on Nov. 3, 2014. According to a notice issued byThe Bank of New York Mellon (the indenture trustee for thetransaction), the controlling party directed the trustee to retainthe available amounts in the trust to pay current and anticipatedfees, expenses, and indemnities in lieu of making the scheduledprincipal and interest payments to the noteholders.

Per the latest distribution report, after covering this period'sexpenses, the trust has cash reserves of US$4 million; however,due to the controlling party's decision mentioned above, this willbe retained in the trust to pay future fees and expenses incurredfrom the liquidation of the construction equipment related to theservice agreement. The proceeds from the liquidation could thenultimately help to pay down part of the outstanding note balance.

The notes were issued on May 2, 2011, by trust no. 762 on CIBancoS.A. (formerly The Bank of New York Mellon S.A., Institucion deBanca Multiple) totaling US$160 million due in 2021 and with afixed interest rate of 9.625%. The outstanding balance iscurrently US$148.69 million.

"The downgrade reflects the deterioration of Fertinal's liquidityposition given its weak operating performance as a result ofdeclining prices for DAP and MAP," said Standard & Poor's creditanalyst Fabiola Ortiz. S&P views that the inherent volatility infertilizer prices hampers the company's cash flow generation,which could result in failure to honor its financial commitments.S&P expects Fertinal to cover its next coupon payment for about$10 million due Dec. 2014 only by using an additional credit linefrom Banco Azteca, but the company remains highly vulnerable inthe short term.

Fertinal's operating performance has been steadily slipping giventhe persistently low DAP and MAP prices and unexpected forcemajeure events (Odile Hurricane). Additionally, the price forammonia, the most important purchased raw material for thecompany, continues to increase, weakening Fertinal's EBITDAmargins. In addition, the company won't likely generate theminimum EBITDA generation requirement of $15 million at the end of2014 as part of its financial covenant. However, it would likelyobtain a waiver from its main creditor. For the 12 months endedSept. 30, 2014, Fertinal posted a loss in EBITDA generation of$5.4 million.

The affirmation of Monterrey's issuer ratings at Ba2/A2.mx and thechange of outlook to stable was prompted by the recent decision tochange the State of Nuevo Leon's outlook to stable.

Given the strategic role of Monterrey as capital city of the Stateon Nuevo Leon, Monterrey's ratings incorporate Moody's assessmentthat there is a moderate likelihood that the State of Nuevo Leonwould act to prevent a default in the event that the city facedacute liquidity stress. The state's stable outlook is directlyreflected in Monterrey's ratings.

Monterrey's credit profile is characterized by a strong localeconomy, which supports a productive tax base and high levels ofown-source revenue that represent a high 47.4% of operatingrevenues. Monterrey's issuer ratings also reflect high debt levelsand tight gross operating balances. Net direct and indirect debtstood at 62.7% of operating revenues in 2013 and gross operatingbalances were equivalent to 0.7% of operating revenues.

What Could Change The Ratings Up/Down

If Monterrey registers a sustained improvement in its operatingmargins, which in turn leads to decreasing debt levels the ratingscould be upgraded. Also, an upgrade to the State of Nuevo Leon(Ba2/A2.mx, stable) could exert upward pressure on Monterrey'sratings.

Weakening of operating results and deterioration of consolidatedfinancial results leading to higher debt levels, could exertdownward pressure on ratings. Also, a downgrade of the State ofNuevo Leon's issuer ratings could exert downward pressure onMonterrey's ratings.

The methodology used in these ratings was Regional and LocalGovernments published in January 2013.

The period of time covered in the financial information used todetermine Monterrey's rating is between 1/1/2009 and 12/31/2013.

Moody's National Scale Credit Ratings (NSRs) are intended asrelative measures of creditworthiness among debt issues andissuers within a country, enabling market participants to betterdifferentiate relative risks. NSRs differ from Moody's globalscale credit ratings in that they are not globally comparable withthe full universe of Moody's rated entities, but only with NSRsfor other rated debt issues and issuers within the same country.NSRs are designated by a ".nn" country modifier signifying therelevant country, as in ".za" for South Africa. For furtherinformation on Moody's approach to national scale credit ratings,please refer to Moody's Credit rating Methodology published inJune 2014 entitled "Mapping Moody's National Scale Ratings toGlobal Scale Ratings".

Suriname's macroeconomic conditions weakened in 2013 as gold andoil prices declined. With those prices falling below recentpeaks, the large fiscal and external sector exposures to themineral sector continued their deterioration in 2013, along with asignificant decline in international reserves. Thus, the mainchallenges the authorities are addressing continue to be tostrengthening institutions and adjusting policies to reverse therecent deterioration and strengthen external stability.

Growth is estimated at a robust 4 percent in 2013, supported byfiscal relaxation and strong credit growth. In contrast withrecent years, however, export volumes declined, subtracting fromGDP growth. Gold export volume growth (three-fifths of totalexport of goods) contracted by 1.3 percent in 2013, down frompositive growth of almost 6 percent in 2012, as gold pricesdeclined. Moreover, exports of the other two main commoditiescontinued to be weak-contracting 5 percent for alumina andincreasing by 1.3 percent for oil-reflecting persistently lowalumina prices and limited oil reserves. Inflation remained lowin 2013, averaging 2 percent but has picked up to about 3 percentin May 2014 largely because of higher food and fuel prices.

Following increased reserve requirements in September 2013, bankcredit growth to the private sector has declined from its peak of20 percent (y/y) in October 2013 to 13.4 percent in July 2014.

However, fiscal deterioration continued in 2013. The overallfiscal balance fell by 2.8 percentage points of GDP to a deficitestimated at 6.8percent of GDP. Much of the deteriorationreflected a significant decline in mineral revenues, but fiscalexpenditures also increased. Strong fiscal consolidation is beingimplemented in 2014, and the fiscal deficit is expected to declineto 3.7 percent of GDP this year. Public debt is rising butremains relatively low at about 30 percent of GDP.

The external balance has also declined considerably. The currentaccount balance fell 7.3 percentage points to a deficit of 4percent of GDP in 2013, primarily reflecting the substantialadverse impact of falling gold prices on exports. In addition,domestic demand pressures manifested in strong goods imports,which offset the beneficial impact of declining imports for largeprojects on the current account balance. Alongside, internationalreserves declined to 3.4 months of imports.

Executive Board Assessment

Executive Directors welcomed Suriname's robust economic growth andcommended the authorities for their recent consolidation effortsto address the widening fiscal and external imbalances, and theprogress made on financial sector reform. Noting the challengesposed by the exposure to uncertain commodity prices, Directorscalled for continued prudent policies and reforms to ensuremacroeconomic stability, support diversification, and make growthmore inclusive.

Directors welcomed the authorities' recent expenditure control andtax collection efforts and called for continued resolve in the runup to the 2015 elections. They encouraged the authorities totarget a fiscal surplus over the medium term to bolster theexternal position and help build buffers. Directors underscoredthat successful fiscal consolidation will require additionalmeasures, supported by a rules-based framework, incorporating afiscal anchor. They encouraged the authorities to exerciseexpenditure restraint by phasing out untargeted subsidies,containing the wage bill, and prioritizing spending on goods andservices and capital projects while protecting the vulnerable.

Timely implementation of the VAT, together with further reform andmodernization of the customs and tax structure, will strengthenrevenues. Directors also encouraged the authorities to ensure thesustainability of the newly established national pension andhealth care system.

Directors considered the monetary policy stance to be appropriatebut advised the authorities to stand ready to tighten monetarypolicy, if needed, to safeguard external stability. Theyencouraged pushing ahead with plans to establish open marketoperations, which will expand available monetary policy tools.Directors noted that the fixed exchange rate regime remains anappropriate anchor for policymaking for now, but requires asubstantial fiscal tightening to support the current level of thecurrency. They encouraged the authorities to phase out existingmultiple currency practices as soon as possible, and to improvedata collection on foreign currency lending to better informregulation.

Directors commended the progress in upgrading financial sectorresilience. They looked forward to the implementation of theFinancial Sector Assessment Program (FSAP) recommendations,focusing on further improvements in prudential standards,supervision, the Anti-Money Laundering/Combating the Financing ofTerrorism (AML/CFT regime), and continued efforts to bolster theinstitutional capacity and effectiveness of the central bank.Directors supported plans to establish a credit bureau and depositinsurance, modernize the payment and settlement system, andstrengthen the insurance sector regulatory framework.

Directors welcomed the authorities' focus on improvingcompetitiveness and diversifying the economy. They looked forwardto the timely passage of the draft legislation spearheaded by theCompetitiveness Unit, which will modernize the businessenvironment. They also saw scope for increased labor marketflexibility, supported by a well-targeted social safety net, tofoster job creation. Directors advised a cautious approachregarding the planned increases in the minimum wage. Furtherprogress in strengthening the data quality would enable soundpolicymaking.

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Monday's edition of the TCR-LA delivers a list of indicativeprices for bond issues that reportedly trade well below par.Prices are obtained by TCR-LA editors from a variety of outsidesources during the prior week we think are reliable. Thosesources may not, however, be complete or accurate. The MondayBond Pricing table is compiled on the Friday prior to publication.Prices reported are not intended to reflect actual trades. Pricesfor actual trades are probably different. Our objective is toshare information, not make markets in publicly traded securities.Nothing in the TCR-LA constitutes an offer or solicitation to buyor sell any security of any kind. It is likely that some entityaffiliated with a TCR-LA editor holds some position in theissuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies withinsolvent balance sheets obtained by our editors based on thelatest balance sheets publicly available a day prior topublication. At first glance, this list may look like thedefinitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

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